Construction loan tied to “leaning” Seaport condo up for sale

The construction loan was originated by Bank Leumi USA

New York /
Oct.October 02, 2020 05:11 PM
161 Maiden Lane and Fortis CEO Jonathan Landau (Google Maps; Fortis)

161 Maiden Lane and Fortis CEO Jonathan Landau (Google Maps; Fortis)

UPDATED, 11:15 a.m., Oct. 5: A $120 million non-performing construction loan tied to Fortis’ One Seaport condo in the Financial District is up for sale.

Newmark Knight Frank is marketing the construction loan originated by Bank Leumi USA. Investors can purchase the loan, which is “secured by the fee simple interest” of the 98-unit condominium building at 161 Maiden Lane, according to marketing materials.

About $90 million of the $120 million of the construction loan has been funded, according to the brochure.

Newmark Knight Frank’s Brett Siegel, Evan Layne and Brock Cannon are marketing the loan.

The sale is another sign of trouble at the 60-story building, which has been under construction since 2016. It’s been at the center of litigation between the developer Fortis and its contractor Pizzarotti over a “slight misalignment” that resulted in the tower leaning three inches to the north.

In 2017, a construction worker died after falling from the 29th floor of the project, which resulted in a concrete subcontractor, SSC High Rise Construction, pleading guilty to second-degree manslaughter.

Fortis did not immediately return a request for comment. Bank Leumi USA did not immediately return a request for comment.

This is the latest loan tied to a high-profile condo project to go up for sale in recent months. Newmark Knight Frank is also marketing mezzanine loans tied to four of HFZ Capital’s New York condos through a foreclosure sale.

 
 

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